While public transportation usage is highest among apartment renters, recent data show a secular decline, keeping with the overall trend of changing commuter preferences and workplace environments. Driving to Work Lower Among Apartment Renters Reflecting the recent spike in car ownership rates and lower gas prices, driving to work has experienced a resurgence. Conversely, public transportation usage has witnessed alarming declines across major US cities, largely attributed to lower system upgrades. As shown below, commuting by private vehicles (primarily cars) was the dominant mode of transportation for working renters across all asset types. Between asset types, however, private vehicle rates varied from a high of an 87% share in suburban single-family rentals to a 64% share in downtown-oriented large apartment properties in 20161. Car ridership shares in small apartment properties, which are more dispersed along the downtown-suburban continuum, landed in an expected middle ground at 77%. Looking at the broader transportation landscape, as shown below, commuting rates by public transportation (including taxis, less than 1%) varied significantly from a share of only 4% in single-family rentals, to 12% in small Read the full article…

While still below long-term averages, vehicle ownership is increasing across apartment properties.

Millennial students looking for off-campus accommodations in university towns rent more frequently in small apartment buildings, and at higher rates of apartment sharing.

While an overwhelming share of Millennials enrolled in degree programs continue to live with their families, living off-campus in apartment building shares can provide a smoother path toward independent living.

A sizeable share of collegiate Millennials lives in off-campus rental accommodations, with apartment buildings dominating this segment.

Small apartment properties play a crucial role in maintaining affordable rental options for the workforce segment across US metros.

Small apartment buildings comprise the largest share of workforce housing demand within the top 20 metros, while single-family rentals dominate the next 30.

Workforce rental housing demand has increased the most in the smaller metros where apartment properties, both small and large, are increasing their shares of this demand segment.

Workforce segment renters living in small apartment properties are adapting to the changing economy, while also representing a broad occupational base.¹

Multifamily properties capture the largest share of the overall U.S. workforce rental demand, while single-family rentals are the largest individual asset class.